National Bank weighs SRT tied to project finance deals

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeFinanceBankingNational Bank weighs SRT tied to project finance dealsBanks use SRTs as a way to insure loans against defaultAuthor of the article:Esteban Duarte and Paula SamboLast updated 1 hour ago You can save this article by registering for free here. Or sign-in if you have an account.National Bank signage in Vancouver, B.C., Canada, on March 18, 2026. Photo by Paige Taylor White/BloombergNational Bank of Canada is assessing investors’ appetite for a significant risk transfer deal, adding its name to a growing list of lenders exploring the instruments as a way to create room on their balance sheets.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe Montreal-based lender is considering an SRT tied to a portfolio of project financings, according to people familiar with the matter. The potential deal is still in its early stages, the people said, speaking on condition they not be identified in order to discuss private deliberations.A representative for National Bank declined to comment.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againBanks use SRTs as a way to insure loans against default, typically obtaining protection for between five per cent and 15 per cent of the portfolio value, in order to free up capital for new business. Transferring risk this way increases their ability to original new loans, make acquisitions or increase shareholder payouts. The firms assuming the risk stand to reap coupon payments that can exceed 10 per cent.Rivals Toronto-Dominion Bank and Royal Bank of Canada have discussed similar deals with investors this year.Global sales of SRTs are on track to achieve a record-breaking US$45 billion this year, up from US$41 billion in 2025, according to estimates by Crescent Capital, a unit of Sun Life Financial Inc.’s asset management division. Sales of SRTs in the first half of the year surpassed US$18 billion.Loans to large companies and to small- and mid-sized enterprises continue to be the most popular types of collateral tied to SRTs, representing 59 per cent and 15 per cent of volumes, respectively, Crescent Capital said. Banks are also adding other types of assets, such as project financings.Spain’s BBVA SA recently completed an SRT tied to a portfolio of €2 billion (US$2.3 billion) of project financings, including some loans for digital infrastructure. In Germany, Deutsche Kreditbank AG, one of the country’s largest lenders to sustainability projects, has been working with Deutsche Bank AG on an SRT related to a portfolio of renewable power loans.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.